Cameron makes "big, open" offer to Lib Dems

David Cameron this afternoon made a "big, open and comprehensive" offer to the Liberal Democrats about the possibility of forming a "collaborative" government.

Steering clear of using the word 'coalition', the leader of the Conservative Party, which has so far won more than 300 seats in the election, said the two parties shared views on a number of issues, including tax reform. He added it was important an agreement was reached "quickly".

But he stressed there were also policies on which the Tories would not budge. He said the ruling government should not give more powers to the EU, or "soften" its stance on immigration. He also said Britain's defences "must be kept strong".

Cameron also pledged an all-party parliamentary committee on electoral reform.

Labour leader and still Prime Minister Gordon Brown earlier said he accepted Liberal Democrats leader Nick Clegg would talk to the Tories about forming a government before the Labour party.

Brown said he was willing to wait for the outcome of Clegg's talk with Cameron adding, if the discussion came to nothing, he would be prepared to discuss possible areas of agreement with Clegg.

In an open offer to the Liberal Democrats, Cameron said his party would give "assurances" on certain policies in what he called a "confidence and supply arrangement".

Another option, he said, would be to form a "simple" minority Tory government.

He said the key issues remained to solve the debt crisis, Britain's social problems and what he dubbed the county's "broken" political system.

He added he remained "completely convinced" that dealing with the country's budget deficit this year is essential to prevent "economic disaster".

He said, as his party has secured both the most votes and the most seats at this election, it was "reasonable to assume" the bulk off their policies should be implemented.